SMALL CAP MOVERS: H&T becomes latest bargain basement takeover victim

H&T Group is calling time on its 19-year tenure as a fixture on London’s AIM market after agreeing a £297million takeover by United States-listed FirstCash.

The deal marks the latest in a growing list of UK small and mid-cap companies being acquired at bargain-basement valuations.

Shares in the UK’s largest pawnbroking chain rose 42 per cent over the week after the 661p-per-share offer was announced on Wednesday.

The proposal includes a 650p cash payment and a final dividend of 11p due in June. The price represents a 44 per cent premium to H&T’s close before the deal.

The move underscores a broader trend of overseas buyers targeting undervalued UK assets, particularly outside the FTSE 100, where valuations remain well below historical averages.

Founded in 1897, H&T has become a familiar name on British high streets, offering short-term loans secured against jewellery and watches.

Acquisition deal: H&T Group is calling time on its 19-year tenure as a fixture on London’s AIM market after agreeing a £297million takeover by United States-listed FirstCash

The board said it had received several proposals since December before entering formal talks.

While it expressed confidence in the company’s standalone prospects, it cited uncertain gold prices, rising costs and subdued consumer sentiment as ongoing headwinds.

Turning to the wider market, the AIM All-Share added 1.5 per cent this week to reach 733.18, taking it back to levels last seen in December 2024.

It kept pace with the FTSE 100, which also clawed back ground lost in the aftermath of US President Trump’s tariff assault on the rest of the world.

Keeping with the positives, Metals One continued its rise after confirming the acquisition of the Swales gold project in Nevada.

There is a term in junior mining called ‘nearology’, the idea that proximity to a producing mine equates to success. It does not always hold, but Metals One investors will hope favourable geology extends to the Swales property.

Just 13 miles up the road lies the Carlin Complex, a joint venture between Barrick Gold and Newmont and the world’s largest gold-producing site.

Investors appeared excited by the prospect, with shares rising 69 per cent. If you had bought a month ago, you would have more than doubled your money.

Belluscura, the portable oxygen tank maker, enjoyed a stellar week with no discernible trigger. It was even forced to issue a statement saying it had no explanation for the sharp rise in the share price.

While it reported record April sales, it also launched a strategic review, which is rarely interpreted as a buy signal by investors.

The review will consider options including strategic investment, partnerships and alternative funding structures.

Belluscura said it was not putting up a for sale sign, but the market seems to have reached a different conclusion. The shares ended the week 52 per cent higher.

Polarean Imaging rose 35 per cent after putting the spotlight on its collaboration with Philips.

The Dutch group is to broaden use of Polarean’s Xenon lung MRI technology to include younger children with chronic obstructive lung disease, subject to regulatory clearance.

Its technology was also showcased in more than 30 clinical studies at the American Thoracic Society’s annual meeting in San Francisco this month.

There are three words no more loathed by oil and gas investors than plugged and abandoned, often shorthand for failure.

Empyrean Energy fell 75 per cent after calling time on the Wilson River-1 well in Queensland. The reaction tends to be knee-jerk, so expect sentiment to moderate in the coming days.

The news was good for Mirriad Advertising, though the share price, down 35 per cent, told a different story. The group, which places adverts in films and TV shows, raised £1.6million, resolving its immediate funding needs.

The decline was a consequence of raising the money by issuing 16 billion new shares at a discount, heavily diluting existing shareholders.

Finally, Solvonis Therapeutics raised £2million in rapid-fire funding as part of the quiet but effective transformation under Anthony Tennyson.

Formerly an ailing polymers specialist, the group, following its £5million acquisition of Awkn Life Sciences, will become a clinical-stage drug developer focused on post-traumatic stress disorder and alcohol abuse.

Its chief scientific officer is Professor David Nutt, the former government drugs adviser, who now heads the Centre for Psychedelic Research in the Division of Brain Sciences at Imperial College London.

For all the mid- and small-cap news go to www.proactiveinvestors.co.uk.

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